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Basic Question 1 of 5
A bond with annual coupon payments has the following characteristics:
Yield to maturity: 10%
Macaulay duration: 9
B. 8.33
C. 9.78
Coupon rate: 8%
Yield to maturity: 10%
Macaulay duration: 9
The bond's modified duration is ______.
A. 8.18
B. 8.33
C. 9.78
User Contributed Comments 7
| User | Comment |
|---|---|
| haarlemmer | annual coupon! |
| tanyak | ANNUAL STUPID COUPON! |
| wink44 | Thought we didn't need to memorize that equation for the test? |
| anneki | We can memorize one more equation. |
| DonAnd | my sentiments exactly wink44 but it is actually an easy formula. |
| rvera | I always think that we should assume a semi-annual coupon...but perhaps that is just me. |
| johntan1979 | Question stated "annual". It's a very easy formula, guys! I'm sure there's some space left in our coconuts after all those CFA curriculum and formulas :) |
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
define, calculate, and interpret modified duration, money duration, and the price value of a basis point (PVBP)
CFA® 2025 Level I Curriculum, Volume 4, Module 11.